U.S. Floorplan Risk Management

U.S. Lease Securitization Significance Of Securitization Value Sample Calculation: Lease Balance Securitization Value Payments Remaining 24 24 Base Monthly Payment Residual Value ᏌᏊ $ 200 $ 16,000 SAS 200 $ 13,000 Discount Rate 2% 5% Present Value $ 20,049 $ 16,275 64 Ford FORD CREDIT Difference of $3,774 $20,049 $16,275 Lease Balance Securitization Value • . For securitization transactions, a "Securitization Value" is calculated for the underlying lease assets Securitization value is calculated using the lower of the contract residual value or the residual value set by Automotive Lease Guide (ALG) Securitization value cash flows are discounted using the higher of the contract lease factor or a minimum discount rate designed to create excess spread

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